- Quarterly BOJ Tankan comes in better than expected, but effect of earthquake likely not included
- China March PMI +53.4, up from 52.2 in February
- Irish CB: Ability to repay debt depends on economic growth
- Asian stockmarkets flat to slightly higher
- Gold falls 0.5% to $1432/oz on profit taking pre-NFP; Oil $107/bbl
Not a lot to report from the Asian trading session except a continued weakening of the JPY.
USD/JPY opened just below supposedly heavy offers at 83.30 but they were taken out in early trade as traders triggered stops above 83.35/40. AUD/JPY buying was also consistently to the fore as hedge funds bail into the carry trade again. There has been no respite for USD/JPY, with a gradual move higher taking out sell orders near the 200-day MA at 83.63. Ranges: USD/JPY 83.14/74, EUR/JPY 117.79/118.66
EUR/USD fell briefly in early trade on the comments from the Irish central bank governor but apart from that it’s really again all been about EUR/JPY, with some short-covering in EUR/CHF also noted. Ranges: EUR/USD 1.4151/75, EUR/CHF 1.3006/57
AUD/USD did its usual trick of falling in early trade but then rebounding in the afternoon. Dealers are eyeing some sizeable option interest near 1.0375 with supposedly heavy stops above 1.0380 and 1.0400. Hedge funds and CTAs continue to chase the AUD/JPY higher. Ranges: AUD/USD 1.0311/55; AUD/JPY 85.83/86.70
Cable played second fiddle to the other market action in a 1.6020/49 range and EUR/GBP .8823/41
